The Medicare Part B premium taken from your Social Security
The amount in your Social Security letter is not the amount in your bank account. For most people the gap is the Part B premium.
Checked by Radif Partners · Editorial policy · How we calculate
The standard Medicare Part B premium is $202.90 a month in 2026, up $17.90 from $185.00 in 2025, according to CMS, and the annual Part B deductible is $283. If you receive Social Security and are enrolled in Part B, the premium is withheld from your monthly benefit before it is deposited. A retired worker paid the August 2026 average of $2,087 therefore receives $1,884.10. Higher incomes pay more: single filers whose 2024 modified adjusted gross income exceeded $109,000 ($218,000 on a joint return) pay an income-related monthly adjustment amount on top, from $81.20 to $487.00, for a total premium of up to $689.90. The 2.8% cost-of-living increase for 2026 and the premium increase move in opposite directions: on a $2,000 benefit, the COLA added $56 and the premium took back $17.90.
Deposit left after the Part B premium
Net monthly deposit
$1,884.10
| Standard Part B premium | $202.90 |
| Income-related adjustment | $0.00 |
| Withheld over 12 months | $2,434.80 |
Part D plan premiums and voluntary tax withholding are not included.
From benefit to deposit
Social Security computes your benefit, rounds it down to the dollar, then subtracts what you owe Medicare. The standard Part B premium for 2026 is $202.90, set by CMS and announced on November 14, 2025 (CMS fact sheet). The subtraction happens every month, so the yearly cost for one person is $2,434.80. For a couple both enrolled, two premiums come out of two checks: $405.80 a month.
| Monthly benefit | Part B premium | Deposit | Deposit with 10% tax withheld |
|---|---|---|---|
| $1,000 | $202.90 | $797.10 | $697.10 |
| $1,500 | $202.90 | $1,297.10 | $1,147.10 |
| $2,087 | $202.90 | $1,884.10 | $1,675.40 |
| $2,500 | $202.90 | $2,297.10 | $2,047.10 |
| $3,500 | $202.90 | $3,297.10 | $2,947.10 |
| $5,181 | $202.90 | $4,978.10 | $4,460.00 |
The fourth column adds one common choice: voluntary federal tax withholding. The SSA offers 7%, 10%, 12%, 22% of the monthly benefit. Withholding is optional and is computed on the benefit, not on the deposit; the tax calculator shows whether any of your benefit is taxable at all.
Higher incomes: the income-related adjustment
About 8% of people with Part B pay more than the standard premium. For most beneficiaries the government pays about 75% of the cost of Part B; higher-income beneficiaries pay a larger share, and the SSA collects the difference by withholding it from benefits. The 2026 amounts, from CMS:
| Single filers, MAGI | Joint filers, MAGI | Part B adjustment | Part B total | Part D adjustment |
|---|---|---|---|---|
| $109,000 or less | $218,000 or less | $0.00 | $202.90 | $0.00 |
| $109,000 to $137,000 | $218,000 to $274,000 | $81.20 | $284.10 | $14.50 |
| $137,000 to $171,000 | $274,000 to $342,000 | $202.90 | $405.80 | $37.50 |
| $171,000 to $205,000 | $342,000 to $410,000 | $324.60 | $527.50 | $60.40 |
| $205,000 to $500,000 | $410,000 to $750,000 | $446.30 | $649.20 | $83.30 |
| $500,000 or more | $750,000 or more | $487.00 | $689.90 | $91.00 |
Married people who lived with their spouse during the year but file separately follow a shorter scale in the CMS table, with the top two amounts applying from $109,000. Modified adjusted gross income here means adjusted gross income plus tax-exempt interest. A retiree with a single return showing $150,000 of MAGI falls in the third band and pays $405.80 a month for Part B, $202.90 more than the standard premium; on a $3,500 benefit the deposit is $3,056.70 once the Part D adjustment of $37.50 is also withheld.
A two-year lag, and how to correct it
The adjustment for 2026 is based on the most recent return the IRS provides to the SSA, generally the return filed in 2025 for 2024. Sometimes the IRS has only the 2023 return; in that case you can send the newer one. The lag matters most in the first years of retirement, when a final salary year or a large retirement plan distribution can push income above the first threshold even though current income is much lower.
The SSA will make a new decision when income fell after one of these events: marriage, divorce or death of a spouse; you or your spouse stopped working or reduced hours; loss of income-producing property in a disaster or event beyond your control; the end or reorganization of an employer pension plan; or a settlement from an employer after closure, bankruptcy or reorganization. An amended tax return can also change the figure, with a copy of the amended return and the IRS acknowledgment.
The COLA and the premium in the same January
Each January, two numbers change your deposit at once. The cost-of-living increase of 2.8% for 2026 (Federal Register) raised a benefit of $2,000 to $2,056. In the same month, the standard premium rose from $185.00 to $202.90. The deposit went from $1,815.00 to $1,853.10, a net gain of $38.10 rather than the $56 the COLA alone suggests. The COLA page details who received the increase.
The deductible is separate
The $283 annual deductible for 2026, up from $257 in 2025, is not withheld from Social Security. You pay it as you receive Part B services: the first $283 of covered outpatient and doctor costs in the year are yours before Part B starts paying its share. Only premiums, and income-related adjustments, come out of the check.
When the deduction does not happen
Several situations break the automatic link between the check and the premium. People who enroll in Medicare at 65 but delay Social Security receive a bill instead. Benefits too small to cover the premium leave a remainder to pay on a bill. And people abroad face a different calculation: the SSA publication for beneficiaries outside the United States notes that Medicare generally does not cover care received outside the country, and that enrolling later adds 10% to the premium for each 12-month period you could have been enrolled. The payment schedule page shows on which Wednesday the net deposit arrives.